W.R. Berkley Earnings Cheat Sheet: Keeping the Profitability Streak Alive

W.R. Berkley Corporation (NASDAQ:WRB) reported its results for the second quarter. W.R. Berkley Corporation is an insurance holding company in the United States which operates in five business segments: specialty insurance, regional property casualty insurance, alternative markets, reinsurance and international.

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W.R. Berkley Earnings Cheat Sheet for the Second Quarter

Results: Net income for the property and casualty insurance company fell to $83.1 million (56 cents per share) vs. $110.2 million (70 cents per share) a year earlier. This is a decline of 24.6% from the year earlier quarter.

Revenue: Rose 9.3% to $1.27 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: WRB beat the mean analyst estimate of 43 cents per share. It beat the average revenue estimate of $1.21 billion.

Quoting Management: Commenting on the Company’s performance, William R. Berkley, chairman and chief executive officer, said: “We were pleased with our results for the quarter in spite of the level of catastrophic activity. With both rising prices and increased volume, we maintain our positive view for improving rates in the commercial insurance market. Our newer ventures continue to be the significant driver of our growth. Our balance sheet reflects a cautious outlook as to inflation and general industry claim trends. “Today, as in the past, cyclical change in the insurance industry begins gradually. Price increases vary by line and geographic territory. At the moment, while rate increases are definitively positive, loss costs are also increasing. We anticipate accelerating rate increases as the year progresses.”

Key Stats:

The company has now seen net income fall in each of the last four quarters. In the first quarter, net income fell 1.8% while the figure fell 5.5% in the fourth quarter of the last fiscal year and 4.2% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 7% to $1.23 billion in the first quarter. The figure rose 4.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 3.5% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 66 cents versus a mean estimate of net income of 64 cents per share.

Competitors to Watch: White Mountains Insurance Group, Ltd. (NYSE:WTM), American Financial Group (NYSE:AFG), The Travelers Companies, Inc. (NYSE:TRV), First Mercury Financial Corp. (NYSE:FMR), Global Indemnity plc (NASDAQ:GBLI), OneBeacon Insurance Group, Ltd. (NYSE:OB), Markel Corporation (NYSE:MKL), Arch Capital Group Ltd. (NASDAQ:ACGL), and CNA Financial Corporation (NYSE:CNA).

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(Source: Xignite Financials)

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